There are many different types of mutual funds. Mutual funds offer a variety of schemes that will suit your needs over a lifetime. Here are the different ways of investing in Mutual Funds.
You may know very well about this method. This is the oldest and common method of investing in mutual funds. You can contact an agent who is an expert in this field. You do not have to pay him a commission on the amount spent. The Mutua Fund House will pay the same and which forms a part of the expense ratio. The agent will guide you on which mutual funds to buy. Many agents are linked with many companies which provide login facility. You can login and see how your mutual funds are performing.
AMC stands for an asset management company. You can invest directly through an AMC. There are many mutual funds which provide online facilities for investing. You can go directly to the AMC office to invest for the first time. After that you can invest in that mutual fund, online through their website. If you want to invest in funds from different AMC's, then you have to go and visit all of the companies. SIPs are the best way you can invest directly through the asset management company.
You can visit AMFI website and also invest in it. The Web site of the Association of Mutual Funds in India has a list of mutual fund agents across the country. There you can see one heading Investors Zone, under this you will find another one called ARN Search. This refers to the AMFI Registration Number. Click on that number, and you will arrive at a new search page. You can locate an agent in your area by just putting in your PIN code or name of your city.
Investing through a Demat Account
If you have a dmat account, it is one of the most convenient methods of investing in mutual funds. You have to pay commission here. Some charge a flat fee and some charge on a percentage basis. By buying and selling mutual funds through a Demat account, you can control everything from one place. Geojit Securities, HDFC Securities, ICICI Direct, India Bulls, Sharekhan, etc. are well known in this fields.
There are many online portals which allow you to invest in Mutual funds. You just open an account with them, and they will send all the documents to your home. You don't have to pay a single paisa. FundsIndia, FundsSuperMart are some portals like that. Commission from AMC's will be the major income of them. It is always adviced to check with your Financial Planner or Advisor before investing in mutual funds.
Now some banks are mutual fund agents. Visit your nearest bank branch and ask if they are selling any mutual funds. See if they have a tie-up with the fund house you want to invest in.